Nvidia (NVDA) stock traded above $1,100 for the first time on Tuesday, putting it on track to surpass its previous record high.
The milestone moment comes after Elon Musk’s artificial intelligence startup XAI said Sunday it raised $6 billion in a Series B funding round, sending Nvidia shares up as much as 8% the following trading day.
The flood of AI investments has continued optimism about Nvidia’s growth as the chipmaker continues its record stock rally. Last week, Nvidia reported first-quarter results that more than impressed Wall Street: Adjusted profits rose 461% year over year, while revenue grew 262%.
According to The Information, Musk plans to use Nvidia chips for a new “supercomputer” that will be used to power xAI’s chatbot called Grok.
“xAI will continue this steep trajectory of progress in the coming months, with multiple exciting technology updates and products to be announced soon,” Sunday’s blog post said.
In addition to stellar profits, Nvidia also announced a 10-for-1 stock split and an increase in its cash dividend — a move repeated by other tech giants in recent quarters.
In an exclusive interview with Yahoo Finance following the company’s earnings report, Nvidia CEO Jensen Huang shrugged off concerns about a future slowdown in demand after the executive said the company’s data center growth in the first quarter was still slowing. fueled “by strong and accelerating demand for generative AI training.”
“People want to deploy these data centers now,” Huang said. “They want our [graphics processing units] to work now and start earning money and saving money. And so that demand is just so strong.”
The company reported record quarterly data center revenue of $22.6 billion, up 427% from the same period last year. Overall, data center revenue accounted for 86% of the company’s total revenue for the quarter.
Alexandra Canal is a senior reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, and email her at alexandra.canal@yahoofinance.com.
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